Oklahoma § 19-1710 - Sinking fund levy - Formula - Intent of act

§ 19-1710. Sinking fund levy - Formula - Intent of act

It shall be the duty of the board to make a levy each year for a

sinking fund, which shall, with cash actually on hand and lawful

investments in such fund, excluding taxes in process of collection,

be sufficient to pay:

1. All the bonded indebtedness of such district coming due in

the following years;

2. The interest accrued but unpaid and to accrue on all

outstanding bonds of such district to June 30th of such fiscal year,

but including any interest falling due on the last and final bond

maturity occurring after such June 30th but before the tax levy of

the succeeding fiscal year may be made and collected; and

3. A sum, after reserving from said cash and investments on

hand for bond and bond-interest accruals as aforesaid.

The foregoing formula shall be applied by said district each

year in determining the amount necessary to raise by tax levy for

sinking fund purposes, independently of actions taken in previous

years, and if by omission to make a levy which could have been

validly made for any bonds or interest coupons, or where from any

cause the cash and valid investments in the sinking fund does not

equal the accrual liabilities, it shall be the duty of said district

to readjust the annual bond accrual in accordance with the foregoing

formula in order that said bonds shall be paid when due, save and

except only that where the cash and valid investments in the sinking

Oklahoma Statutes - Title 19. Counties and County Officers

fund at the close of any fiscal year, after reserving for interest

accrued and accruing under the priority therefor as contained in

Section 9C of Article X of the Constitution of the State of

Oklahoma, is insufficient to pay and retire any bonds matured or to

mature before another tax levy may be made and collected and no

action has been instituted to refund such matured bonds, it shall be

the duty of said district to include, in addition to interest

thereon or aforesaid, an accrual therefor in an amount equal to the

bonds so matured or to mature or the annual accrual first lawfully

applicable to the issue thereof, whichever is the lesser.

It is the sole intention of this act to require that sinking

funds be applied as provided by Section 9C of Article X of the

Constitution of the State of Oklahoma.

Added by Laws 1986, c. 145, § 10, eff. June 1, 1986.